Summary: Investors can follow income, growth, or value strategies based on their goals and risk tolerance.

From Nasdaq: 2024-09-10 18:33:00

Investors tend to gravitate toward three main investment strategies: income, growth, or value. Income investors seek passive income from dividends, growth investors chase market-beating gains, and value investors hunt for discounted opportunities such as Dividend Aristocrats like Illinois Tool Works (ITW).

Income investing focuses on generating passive income, often through dividend-paying stocks like the Dividend Aristocrats. Growth investing targets companies expected to grow at an above-average pace, such as NVIDIA (NVDA). Value investing involves buying undervalued stocks like Tenet Healthcare (THC), betting on market recognition of true value over time.

High-growth companies are volatile, while value investing requires patience for stocks to reach their true value. Each strategy caters to different investor profiles, from conservative income investors to those seeking growth or value opportunities. Consider your risk tolerance and investment horizon when choosing an investment style.



Read more at Nasdaq: Breaking Down Common Investing Strategies